PRESS RELEASE

JAKARTA, Tuesday (November 10, 2020) - The Audit Board of the Republic of Indonesia (BPK) stated that based on the level of government, all provincial governments achieved unqualified opinion. In addition, there were 364 out of 415 regencies and 87 out of 93 cities succeeded to achieve the same. This achievement had exceeded the targets set for the regional financial performance in the field of strengthening regional governance/financial capacity development program of provincial, regency, and city governments as stipulated in the National Medium-Term Development Plan (RPJMN) Year 2015-2019.

It was disclosed in the Summary of Audit Reports of the First Semester of 2020 (IHPS I 2020) presented by the BPK Chairman Agung Firman Sampurna to the Chairman of the Regional Representatives Council (DPD) in Jakarta, Tuesday. The IHPS I 2020 summarized 680 audit reports consisting of 634 financial audit reports, 7 performance audit reports, and 39 special-purposed audit reports.

In the first semester of 2020, the BPK audited 541 out of 542 regional government financial statements (LKPD) Fiscal Year 2019 or equaled to 99%. At the time the IHPS was drawn, one regional government had not yet submitted its financial statements to the BPK, that was, the Waropen Regency in Papua Province.

All in all, the audit conducted during the first semester of 2020 resulted in 90% or 485 LKPD achieving unqualified opinion, 9% or 50 LKPD achieving qualified opinion, and 1% or 6 LKPD granted with disclaimers. The number of unqualified opinion recorded an increase of 82% if compared to Fiscal Year 2018.

Although in general the quality of LKPD Fiscal Year 2019 experienced an increase, there were still some with declining opinion. Regional governments experiencing a decline from unqualified to qualified opinion included Subulussalam City, North Lampung Regency, and South Konawe Regency. Those with declining opinion from qualified opinion to disclaimer included Jember Regency and Taliabu Island Regency.

The audit results of the LKPD Fiscal Year 2019 revealed 6,160 findings containing 10,499 problems, consisting of 5,175 problems of the internal control system and 5,324 problems of non-compliance with laws and regulations amounting up to IDR 1.52 trillion. With regard to non-compliance issues, audited entities had followed up the matters with the deposits to the state/regional treasury or the handover of assets worth IDR 285.79 billion settled during the audit process.

The IHPS I 2020 also included the results of performance audits conducted on regional governments. It revealed some issues among others the ineffective efforts of Aceh Government in achieving targets of development program and infrastructure maintenance from the use of the special autonomy fund Fiscal Year 2019. The similar issue was also revealed in the ineffectiveness of Lampung Provincial Government in achieving the road stability target to support the movement of people and goods in 2019. On the other hand, East Java Province was judged to be quite effective in achieving the road stability target in 2019. Other issues revealed were the air pollution control from the land transportation sector in DKI Jakarta that still needed to improve, and the ineffectiveness of the pre-disaster management of Banten Province in 2019.

The BPK appreciated the support of the DPD in realizing transparent and accountable state/regional financial governance. Its intensive supervision promoted the effectiveness of the follow up of BPK’s recommendations.

Public Relations and International Cooperation Bureau